Save taxes now!

The federal and state governments have significantly improved depreciation options for computer hardware and software! These can be written off immediately, meaning the costs are fully tax-deductible in the year of purchase. (Sources include Haufe )

Why the useful life was changed

Due to technological advances, the assets in question are subject to ever-increasing change. The tax authorities therefore saw a need to adapt the regulations governing these assets to the changed actual circumstances. For computer hardware and operating and application software, a standard useful life of one year can therefore be assumed.

Is the depreciation carried out according to Section 7 Paragraph 1 of the Income Tax Act?

The tax authorities have clarified that Section 7 (1) of the Income Tax Act (EStG) continues to apply. The option to use a shorter useful life does not constitute a special form of depreciation, a new depreciation method, or an immediate depreciation. The tax authorities also point out that this is not an option under Section 5 (1) of the Income Tax Act.

Usage period of one year

The BMF letter explains that, if the useful life is generally assumed to be one year, depreciation begins at the time of acquisition or production, i.e. at completion, the assets must be included in the inventory to be maintained in accordance with R 5.4 EStR 2012, the taxpayer can also deviate from this assumption, and the application of other depreciation methods is generally possible.

Depreciation in full in the year of acquisition or production

The principles also apply to surplus income. Furthermore, the Federal Ministry of Finance has established a non-objection rule: Accordingly, contrary to Section 7 (1) Sentence 4 of the Income Tax Act, depreciation can be applied in full in the year of acquisition or production.

Which hardware and software does this apply to?

The tax authorities classify virtually all assets of a PC system and its peripherals as "computer hardware." Specifically, these include:

• Computer,
• desktop computer,
• Notebook computer (such as tablet, slate, or mobile thin client),
• Desktop thin client,
• Workstation,
• mobile workstation,
• Small-scale servers,
• docking station,
• external power supply,
• Peripheral devices (such as keyboard, mouse, scanner, camera, microphone, headset),
• external storage (hard drive, DVD/CD drive, USB stick, streamer),
• Output devices (such as projectors, plotters, headsets, speakers, monitors or displays), as well as
• Printer (laser, inkjet or dot matrix printer).
  

software

Software refers to all operating and application software for data entry and processing. This includes the non-technical application programs of a data processing system, all standard applications, and also customized applications (e.g., ERP software, software for inventory management systems, etc.).

Are you looking for a notebook for school or college, a professional workstation for graphics editing, or affordable brand-name IT for your home office or office? Buy now and save!